18 December 2015, by Dave Kuschel, Assistant Vice President, Communications
Today President Obama signed legislation that delays the effective date of the Cadillac Tax to 2020. The legislation, known as the year-end omnibus and tax extenders package, also serves as the vehicle for the Church Plan Clarification Act.
The Cadillac Tax is an Affordable Care Act (ACA) excise tax that is anticipated to have a major impact on health plans across the country – including the Concordia Health Plan (CHP). It is a 40 percent excise tax on any “excess benefit,” currently defined as the amount by which the annual cost of health coverage exceeds $10,200 for individual coverage and $27,500 for coverage for more than one individual.
Although the Cadillac Tax’s effective date is delayed, CPS will continue to proactively evaluate the CHP benefit options and develop a strategy to minimize or eliminate the impact of this ACA provision on our ministries. By engaging our internal and external resources on the subjects of quality of care, cost of care, and supporting worker health, we are developing plans that will help us toward that goal.
The Church Plan Clarification Act corrects several technical legal and regulatory issues of church retirement plans.